CT Regulators Fine Johnson Hospital Over Birthing Unit Closure

STAFFORD, CT — The Connecticut Office of Health Strategy Thursday announced an "agreed settlement" with Johnson Memorial Hospital that imposes a "civil penalty" of $153,500 for terminating labor and delivery services without Certificate of Need approval.

The settlement requires the hospital to fund a grant to support reproductive health, prenatal or postnatal care or other services related to childbirth in the hospital’s service area. The OHS will conduct a community forum to seek input on how the funds should be used and will provide final decisions to the hospital.

"Investing the funds from this civil penalty in the community impacted by Johnson Memorial Hospital's actions reinforces the responsibility hospitals have to their communities," OHS Commissioner Deidre Gifford said. "We look forward to hearing from the community how the funds can be best invested to promote maternal and infant health and well-being.”

The OHS is to host a community engagement forum in the "greater Stafford Springs community" in early 2025 and will also accept written comments. Notice of the forum and instructions for submitting public comment will be published on the OHS website and in the CON portal (search under Docket No. 32486).

OHS will inform the hospital of how the funds should be distributed within 90 days of the forum.

OHS officials said State approval is required for the termination of inpatient or outpatient services offered by a hospital under Connecticut General Statutes (CGS) §19a-638(a)(5). JMH initially closed labor and delivery services during the COVID-19 pandemic but did not resume services when the "public health emergency ended." OHS initially issued a more substantial penalty in 2022 but agreed to reduce the amount earlier this year.

"The civil penalty covers a period of time when we did not have a quantifiable definition for termination of services in statute," Gifford said. "The definition was codified in 2022 to define termination of services as 180 days of service closure. The reduction in the civil penalty from the initial determination reflects the standards prior to passage of House Bill 5506."

The OHS recently reached an agreed settlement with JMH permitting the permanent closure of the labor and delivery unit. The settlement requires the hospital to engage an independent consultant to conduct a birthing center study to assess the need for and feasibility of establishing a center in the service area. The agreement also requires the hospital to provide transportation for birthing parents and their partners to a hospital of their choosing within a 50-mile radius of JMH for labor and deliver services at no cost, and meet a number of other requirements to support infant and maternal health.